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Question
Can i claim legal fees in my itemized deductions
AI accountant’s answer:
Yes, you can claim certain legal fees as itemized deductions on Schedule A of your tax return, but only if they are related to the production or collection of taxable income, preserving an existing taxable income source, or determining, collecting, or refunding any tax. Examples include legal fees incurred for tax advice, preparing tax returns, and resolving tax disputes. However, legal fees for personal matters, such as divorce or personal injury cases, generally cannot be deducted. Keep in mind that you'll only benefit from itemizing deductions if your total itemized deductions are greater than your standard deduction. Always maintain proper documentation and records for any legal fees you plan to deduct to support your claim in case of an IRS inquiry. Please note that tax situations may vary, and it's important to determine if your particular legal fees qualify for a deduction based on your specific case.
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